SME IPOs enjoy premium listing
Today 3 IPOs got listed on SME board and all of them enjoyed hefty premiums over the issue price.
IPO market is buzzing and now it seems that SME space is gaining good traction. On Thursday, IPOs got listed on SME board and all of them enjoyed hefty premiums over the issue price. Even banks’ credit to NBFCs is robust. This implies capital infusion in these businesses that augurs well for the whole economy as well.
Let’s have a look at the IPOs that got listed today. Starting with Essen Specialty Films. It witnessed a premium of 30.8% on listing over the issue price. The company did set an issue price band of Rs 101-107 per share and it got listed on NSE SME at Rs 140 per share. The company raised Rs 66 crore from IPO and out of that Rs 50 crore is a fresh issue that will be used for debt repayment and working capital. Essen Sepcialty Films is in the business of home furnishing.
The next IPO is Greenchef Appliances that got listed at a premium of 19.5%. The company had an issue price band of Rs 82-87 per share. However, it got listed on NSE SME at Rs 104 per share. The company raised Rs 53.62 crore from IPO and all of it was a fresh issue. This money will be used for expenditure on new plants and machinery. At the same time, it will also be used for working capital needs. Greenchef Appliances manufactures kitchen appliances.
The third SME IPO is Magson Retail and it got a bumper listing with a gain of 40%. Its price was Rs 65 per share and it got listed on NSE SME at Rs 91.15 per share. The company raised Rs 13.74 crore from the issue. All of that was a fresh issue. The amount will be used for opening new stores, storage units and also for backward integration. Magson Retail is in the business of distribution and retail of specialty food, frozen food and gourmet.